An "optimally imperfect" decision is one that
a. is vaguely right instead of precisely wrong.
b. recognizes that the decision could always be better if given more time.
c. recognizes that the cost of additional information probably exceeds the potential gain from making a better decision.
d. recognizes that any decision is imperfect because humans have limited intellectual capacities.
c
You might also like to view...
Which of the following demonstrates that policymakers cannot know the outcome of their decisions without knowing the public's expectations of them?
A) traditional Keynesian theory B) Post Keynesian theory C) real business cycle theory D) new classical theory
The greater the marginal propensity to consume (MPC) in the economy, the greater the spending multiplier
a. True b. False Indicate whether the statement is true or false
According to the new Keynesian school of thought, fiscal policy is a completely ineffective tool in combating supply-side shocks
a. True b. False Indicate whether the statement is true or false
Senator A agrees to vote for Senator K's state project in exchange for Senator K voting for Senator A's state project. This is an example of:
A. logrolling. B. the paradox of voting. C. the principal-agent problem. D. the median voter model.